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To: zeta1961 who wrote (15949)	3/3/2005 1:35:06 PM
From: quidditch	Respond to of 52153

From the companies' point of view, unequivocally a good thing. Compliance with the SOX 404 report on internal controls over financial reporting has been a sword of damocles hanging over their heads, with the registered public accounting firms waiting for the additional fees to roll in from their attestation reports. Does this mark a reprieve in restraint on financial shenanigans? Probably not. Those companies taking this seriously (and it's a serious commitment in terms of personnel and financial resources) will do a better job, as Beller says. For those who were inclined to shave it close and stick it to shareholders, the SOX 404 report required after July 2005 will not deter them. 404 is really about transparency, redundancy on internal controls, implementing internal checks and balances: I have yet to see a company committed to commit fraud that couldn't overcome regulatory obstacles. What the postponement might do is to allow some cases of inadvertent mis-reporting, with resulting reports of material weaknesses or significant deficiencies, to occur that might have been avoided had internal controls been thoroughly vetted and strengthened. imho, quid

To: zeta1961 who wrote (15949)	3/3/2005 2:49:06 PM
From: Sam Citron	Read Replies (2) \| Respond to of 52153

Well, if you're a US company, you need a market cap < $700 million to get this extension, so it only applies to small caps. Most companies are probably well on their way to compliance anyway, so it shouldn't matter much. I think Congress was really feeling the heat on compliance costs from small companies and also from NYSE who is losing some good listing opportunities from potential foreign ADRs who are saying, "Why should we bother listing in US if they make it so onerous to comply, when we list in London, for example, cheaper." Sam